Business Law- Case Problems

Business Law- Case Problems

 

Chapter 22: Discrimination in Employment

• Would Lyle’s claim of racial discrimination be for intentional (disparate treatment) or unintentional (disparate impact) discrimination? Explain.

1. Lyle’s claim of would be of unintentional (disparate impact) discrimination. This is because nobody targeted her directly due to her racial orientation, but she felt that the action was discriminatory.
2. Lyle can develop a prima facie case of racial discrimination. This is because she has to give statistical information regarding her claims.
3. The typing speed could make the basis of the sacking. This could mean that her case would be thrown out on basis enough reason for termination of her employment.
4. The defense that Warner may assert is the business necessity. They may show that the conduct of the writers was necessary for their business development.

Chapter 23

Case problem 1: Limited Liability Companies

In the case of John, Lesa, and Tabir, the court will apply the partnership law. In most states, the partners would be told to share profits equally. The dispute of John, Lesa, and Tabir could have been avoided in the first place through coming up with an operating agreement. This agreement would be clear on such issues such as division of profits.

Case Problem 2: dissolution of the limited partnership

What would happen if?

• Luis assigns his partnership interest to Ashley

The assignment of Luis’ interest to Ashley will not dissolve the limited partnership. This is because assignment of the interest of a limited partner does not dissolve a limited partnership.

• Elizabeth is petitioned into involuntary bankruptcy

The bankruptcy of Elizabeth will lead to dissolution of the partnership. The law states that bankruptcy of a member leads to dissolution of a limited partnership unless the other members agree to continue with the business (Miller, 2001).

• Dorinda dies

The death of Dorida will lead to the dissolution of the partnership. The law states only the death of limited partner does not dissolve a limited partnership.

Case problem 3: Partnership Formation.

Classen cannot hold Daniel liable as a partner. This is because not partnership existed between Daniel and Rubya. This is because as per the law, there has to be consent of a partnership existing of which was not present in the case of Daniel and Rubya. Additionally there was no joint ownership of the business and an equal right to participate in management which is requirements of a partnership.

Case problem 4: Sole Proprietorship

The reputation, skill, and relationships of a sole proprietor with customers can be valued at looking at the losses that would occur in case the person is not in the business. The goodwill can be divided into personal and enterprise; with the personal part taking the biggest percentage due to the fact that the business relies a lot on the proprietor. This is a good way of valuing the Gaskill’s practice. This is because it factors in the fact that Gaskill is the sole surgeon with an office staff. The other part of the goodwill will be attributed to the business nature and the office staff.

Case problem 5: LLC Dissolution.

There should not be any case of forced dissolution on each member. This is because there is always an option to continue with the business by the members of a limited Liability company who do not dissociate. Van Houten should be allowed to continue with business to accomplish the objectives.
Chapter 24

Case problem 1: Pre-incorporation

The corporation is not automatically liable to Babcock on formation. This is because it never existed when the contract was formed. However, if the company adopts the contract upon formation, then it becomes liable.

Case Problem 2: Ultra Vires Doctrine

Oya had not exceeded her Authority when she cosigned the note. This is because she was the president of the company. However, there was conflict of interest in her action.

Chapter 25

Case problem 1: Voting Techniques

Sergio and the others can have a representative on the board through cumulative voting. Cumulative voting is usually a technique of allowing the minority shareholders to have a representative in the board. Under this technique, Sergio and the others will be given votes totaling to the number of directors to be elected multiplied by the number of shares held by each one of them. The shareholders can have the votes go for one candidate or split them to different.

Case Problem 3: Rights of Shareholders.

Lucia can attend and vote, inspect corporate books and receive dividends based on her one share of common stock of a multimillion-dollar corporation with more than 500,000 shareholders.

Case Problem 4: Fiduciary Duties and Liabilities.

The parties owed each other a duty to act in good faith in the interest of the company, to use power rightfully, to avoid conflict of interest and to retain discretion. Each of the parties breached these duties. Their dispute would be resolved by valuing each party’s liability and reconcile the figures.

Reference

Miller, R. (2001). Fundamentals of Business Law. Cengage Advantage Books.

 

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